Singapore: Ascott’s serviced residence global fund with Qatar Investment Authority (QIA) has acquired properties in Paris and Tokyo for US$104 million.
The properties are Citadines Suites Champs-Élysées Paris -
formerly the private residence of the Hennessy family, and Somerset
Shinagawa Tokyo, located near to the city's transportation
The fund will invest another $33 million to convert the office building in Paris into a luxury serviced residence and embark on asset enhancement to reposition the serviced residence in Tokyo, bringing the total investment to $137 million.
The 70-unit Citadines Suites Champs-Élysées Paris is scheduled to open in 2018, while the renovation of Somerset Shinagawa Tokyo is expected to be completed by the end of 2016.
Set up in July 2015, the $600 million serviced residence global fund is Ascott's largest private equity fund and a 50:50 joint venture with QIA. The fund invests in serviced residences and rental housing properties with an initial focus on Asia Pacific and Europe.
Lee Chee Koon, Ascott's CEO, said: "Ascott serviced residence global fund's maiden acquisitions are quality assets in key gateway cities where demand for serviced residences by expatriates and travellers remains strong. This is a testament of our strong alignment of interest with our capital partners. This value-added fund will capitalise on Ascott's strong capabilities in developing, repositioning and enhancing the value of serviced residences globally. As we gear up to achieve Ascott's expansion target of 80,000 units worldwide by 2020, the fund provides the financial boost to support our acquisitions and growth. With the first right to manage properties acquired by the fund, we will be able to increase Ascott's fee-based income."